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Coca-Cola Company provides the following budgeted and actual data for producing 15,000 units: Budgeted: Direct materials $300,000, Direct labor $225,000, Variable overhead $150,000, Fixed overhead

Coca-Cola Company provides the following budgeted and actual data for producing 15,000 units:
•Budgeted: Direct materials $300,000, Direct labor $225,000, Variable overhead $150,000, Fixed overhead $180,000
•Actual: Direct materials $310,000, Direct labor $235,000, Variable overhead $160,000, Fixed overhead $185,000
Required:
1.Prepare a flexible budget for 15,000 units.
2.Calculate the variances for direct materials, direct labor, variable overhead, and fixed overhead.
3.Provide possible reasons for the variances.

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